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Select Medical Holdings Corporation (SEM - Free Report) delivered second-quarter earnings of 38 cents per share. The Zacks Consensus Estimate was of a loss of 6 cents. Moreover, the bottom line improved 15.2% year over year on the back of lower costs and expenses.
Meanwhile, net operating revenues decreased 9.3% year over year to $1.23 billion due to COVID-19 pandemic and a weak performance by the Outpatient Rehabilitation and Concentra segments. However, the top line beat the Zacks Consensus Estimate by 1.1%.
Total cost and expenses fell 5.5% to $1.1 billion owing to lower cost of services, and general and administrative costs.
Adjusted EBITDA dropped 4% year over year to $178.8 million.
Select Medical Holdings Corporation Price, Consensus and EPS Surprise
Operating revenues increased 12.7% to $519.6 million on the back of better patient days.
Adjusted EBITDA for the segment jumped 39.9% to $89.7 million.
Rehabilitation Hospital Segment
Operating revenues were up 5.2% to $168.7 million, led by expanded patient volumes and revenue per patient day. Adjusted EBITDA dropped 8% to $27.6 million.
Outpatient Rehabilitation
Operating revenues plunged 36.2% to $167.1 in the second quarter due to lower visits.
Adjusted EBITDA losses of $6.3 million came against the year-ago quarter’s Adjusted EBITDA of $42.6 million.
Concentra
Operating revenues were down 24.5% year over year to $312.3 million due to a dip in the number of visits.
Adjusted EBITDA declined 45.5% to $41.5 million.
Balance Sheet Position
At the end of the second quarter, the company had $3.3 billion of long-term debt, net of current portion, down 0.9% from the level at 2019 end.
Total equity of $1172 million increased 26.2% from the level on Dec 31, 2019.
Total cash and cash equivalents of $509 million were up 51.8% from the level as of Dec 31, 2019.
Cash flow provided by operating activities as of Jun 30, 2020 was $642 million, increasing sevenfold year over year.
Share Repurchase Update
Select Medical did not buy back shares in the second quarter.
Zacks Rank
Select Medical currently carries a Zacks Rank #4 (Strong Sell).
Of the medical sector players that have reported second-quarter results so far, earnings of UnitedHealth Group Incorporated (UNH - Free Report) , HCA Healthcare, Inc. (HCA - Free Report) and Universal Health Services, Inc. (UHS - Free Report) beat the respective Zacks Consensus Estimate.
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Select Medical's (SEM) Q2 Earnings Beat Estimates, Rise Y/Y
Select Medical Holdings Corporation (SEM - Free Report) delivered second-quarter earnings of 38 cents per share. The Zacks Consensus Estimate was of a loss of 6 cents. Moreover, the bottom line improved 15.2% year over year on the back of lower costs and expenses.
Meanwhile, net operating revenues decreased 9.3% year over year to $1.23 billion due to COVID-19 pandemic and a weak performance by the Outpatient Rehabilitation and Concentra segments. However, the top line beat the Zacks Consensus Estimate by 1.1%.
Total cost and expenses fell 5.5% to $1.1 billion owing to lower cost of services, and general and administrative costs.
Adjusted EBITDA dropped 4% year over year to $178.8 million.
Select Medical Holdings Corporation Price, Consensus and EPS Surprise
Select Medical Holdings Corporation price-consensus-eps-surprise-chart | Select Medical Holdings Corporation Quote
Critical Illness Recovery Hospital
Operating revenues increased 12.7% to $519.6 million on the back of better patient days.
Adjusted EBITDA for the segment jumped 39.9% to $89.7 million.
Rehabilitation Hospital Segment
Operating revenues were up 5.2% to $168.7 million, led by expanded patient volumes and revenue per patient day. Adjusted EBITDA dropped 8% to $27.6 million.
Outpatient Rehabilitation
Operating revenues plunged 36.2% to $167.1 in the second quarter due to lower visits.
Adjusted EBITDA losses of $6.3 million came against the year-ago quarter’s Adjusted EBITDA of $42.6 million.
Concentra
Operating revenues were down 24.5% year over year to $312.3 million due to a dip in the number of visits.
Adjusted EBITDA declined 45.5% to $41.5 million.
Balance Sheet Position
At the end of the second quarter, the company had $3.3 billion of long-term debt, net of current portion, down 0.9% from the level at 2019 end.
Total equity of $1172 million increased 26.2% from the level on Dec 31, 2019.
Total cash and cash equivalents of $509 million were up 51.8% from the level as of Dec 31, 2019.
Cash flow provided by operating activities as of Jun 30, 2020 was $642 million, increasing sevenfold year over year.
Share Repurchase Update
Select Medical did not buy back shares in the second quarter.
Zacks Rank
Select Medical currently carries a Zacks Rank #4 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Of the medical sector players that have reported second-quarter results so far, earnings of UnitedHealth Group Incorporated (UNH - Free Report) , HCA Healthcare, Inc. (HCA - Free Report) and Universal Health Services, Inc. (UHS - Free Report) beat the respective Zacks Consensus Estimate.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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